Cairn Energy swings to a profit after huge loss last year
Cairn Energy has posted a 914 per cent increase in pre-tax profit to $119.5m (£92.64m), up from a $1.21bn (£94m) loss over the same period the previous year.
Revenue increased from $410.3m (£318m) in 2018 to $533.4m (£413.5m).
The FTSE 250-listed company said net oil production averaged 23,000 bopd in 2019, at the upper end of guidance, and ahead of 2018’s 17,5000 bopd. The energy firm estimates net production of 19,000 to 23,000 bpod next year.
Cairn announced that its North Sea wildcat well Chimera had come up dry in October, but reserve additions were made in Senegal and the North Sea.
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Brent crude recovered after dropping 20 per cent over the weekend as Saudi Arabia threatened to ramp up production amid a dispute with Russia.
Chief executive Simon Thomson said: “Cairn’s strong operational performance in 2019 was delivered through production and cash flow generation at the top end of guidance and the group ended the year with an increased net cash position and undrawn debt facilities.”
“The sale of Cairn’s Norwegian business, combined with exits from exploration positions in Ireland and Nicaragua, demonstrate continued focus on capital allocation as the company seeks to generate further value for shareholders on a sustainable basis.”
Despite swinging to a profit shares closed down 15.93 per cent.